LOCAL SELF-GOVERNANCE DEVELOPMENT PROBLEMS IN GEORGIAJournal: Economic Profile (Vol.13, No. 18)
Publication Date: 2018-12-25
Authors : Boris Chichinadze;
Page : 40-54
Keywords : public finances; decentralization; paternalistic model;
During the period of 15 years since the the collapse of the Former Soviet Union the formation of new States, it had been highlighted that there was a need for decentralization of public finances. The paper analyzes the specificity of the dynamics of the share of the local self-govenance budgets in the summary budget over the last decade, and it has been concluded that Georgia functions in a paternalistic model of State; it acts as a some kind of stabilizing and equilizing agent, but the municipalities appear to us only as subjects, which spend money. According to the conclusion taken as result of research: in order to enable local authorities to exercise their powers properly, they should be provided with sufficient financial resources, for which it is necessary to reconsider the issue of expanding their revenue base. To that end, it is advisable to award the local tax status to any State tax or turn it into a regulatory fee; this model should not reduce the effectiveness of tax administration, and it should stimulate the increase of the tax base of local self-government.
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